Margin gains likely to further boost Aster DM Healthcare stock price

The company had been keen to sell the stake in the GCC business for some time now given a hypercompetitive environment, lower growth (a third of the India business) and lower margins

Healthy valuations for its West Asia business led to a rally in the stock of healthcare services provider Aster DM Healthcare.

The company recently announced the sale of its stake in its West Asia operations for $1.3 billion, which was higher than what the Street was expecting.

The stock has gained about 20 per cent over the last three trading sessions. Going ahead, its ability to scale up India operations and improvement in margins are key to further gains for the stock.

The West Asia business, which comprises a chain of hospitals, clinics and pharmacies across Gulf Cooperation Council (GCC)